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Selling property to family

I co-own a cottage with a family member and am considering bankruptcy or a consumer proposal. Can I sell the rest of the cottage to a family member? IF I declare bankruptcy, how can the trustees sell half of a cottage? Would my family member have to agree to who can purchase the other half?

Posted from: Nova Scotia

One Response to “Selling property to family”

A licensed trustee said...

If you sell your half of the cottage before you file for bankruptcy your trustee will require you to prove that you sold it for its fair value and your trustee will require you to pay an amount equal to whatever the fair value of your half into your bankruptcy. A safer approach will be to have the cottage appraised twice to establish what it is worth, get your family member to agree they’d like to purchase your half for the fair price and then file bankrputcy and let your family member buy your half from your trustee. Everything is above board and it is how the law is supposed to work.